Australian Open Skirts Global Slowdown, Tennis Chief Wood Says 13/10/2008 |
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The Australian Open has so far skirted the global financial crisis, with early demand for tickets and corporate boxes increasing, Tennis Australia Chief Executive Officer Steve Wood said.
The season-opening Grand Slam tournament has lifted prize money to an all-time high A$22 million ($14.4 million), nine of the 10 sponsors have re-signed and ticket sales had a ``record first day'' last week, Wood said in a phone interview.
As the credit freeze slows economic growth and drives down global stock markets, sports events may offer distraction from the gloom, according to Wood. Corporate hospitality packages for the two-week tournament in January at Melbourne Park are selling quicker than 12 months ago, he said, without giving details.
``People just sometimes want to go and have a bit of fun even though the world economies are giving us all a real challenge,'' Wood said from Melbourne. ``We've digested a lot of the challenges that are before us in the market right now.''
Wood said nine of the Australian Open's top 10 sponsors re- signed ``recently,'' including title sponsor Kia Motors Corp., which extended its deal through 2013 in January. The South Korean carmaker is the world's second-best performing auto stock this year. Devanlay SA's Lacoste last week agreed to provide outfits for officials and ballkids for the next five years.
New TV Deals
Tennis Australia has experienced ``significant business growth'' over the past three years, Wood said. Last week it announced broadcasting deals with China's CN Sports Interactive Media Group and Naspers Ltd.'s SuperSport in Africa.
``We're in places we've never been before,'' Wood, 46, said. ``We're in great shape in that regard, though like any company we're carefully watching the state of play in the global economic market.''
The Melbourne-based governing body publishes its annual report next month. It had a surplus of A$2.6 million in 2006- 2007 compared with a deficit of A$1 million in the year earlier period. Cash reserves increased A$5 million to A$30 million at the end of the 2006-2007 financial year.
(Source: Bloomberg)
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